MOSL: Morning India (14/July/17)-1. 1QFY18 Results: 1. TCS, 2. MCX, 3. Cyient; 2. Emami (FY17 Annual Report Update)-3. Telecom
​MOrning India (14/July/17): 1. 1QFY18 Results: 1. TCS, 2. MCX, 3. Cyient; 2. Emami (FY17 Annual Report Update); 3. Telecom; 4. Infosys (Results Expectation)
Today’s top research idea
TCS: Missing revenue traction weighs on profitability too
TCS’ 6.3% YoY CC growth in 1QFY18 was marginally below our estimate of 6.9% YoY. YoY CC growth in larger revenue contributors like BFSI, Retail, North America and UK continued to remain soft.
This in our view implies elevated challenges to exceed 8% YoY CC growth of FY17 this fiscal.
Additionally, while margin pressures from wage hikes and currency were known, TCS’ 240bp EBIT margin decline to 23.4% implied limited offset levers. While TCS retained its confidence of operating in the 26-28% EBIT margin band ex-currency, 1Q margin adjusted for currencies was ~24.5%, the farthest from the band.
The slight revenue miss and larger profitability deficit has led us to revise our earnings estimates downwards by 3-4% over FY18-19.
Piping hot news
HDFC Life may call off merger plan with Max Life, focus on IPO
HDFC Life Insurance may call off its proposed takeover of the Max group’s life insurance business as the two have not been able to arrive at a mutually agreeable alternative structure for the transaction, which the regulator has rejected in its current form.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.